Abu Dhabi Global Market (ADGM) signed an agreement with the Authority of Social Contribution, or Ma’an as it is known, to promote sustainable finance in the UAE.
Sustainable finance integrates environmental, social and governance criteria into business and investment decisions to benefit the society.
"Ma'an is committed to developing innovative and sustainable solutions that directly address social challenges," said Salama Al Ameemi, Ma'an director general, on Sunday. "This partnership with ADGM is crucial in helping to advance our priorities of growing more community-based and socially responsible organisations in Abu Dhabi and supporting a culture of philanthropy in the capital."
The two entities will work together to support Ma'an's social incubator and impact bonds, an innovative and internationally recognised financial tool that will raise private investments to support high-impact social programmes.
By investing in such bonds, private companies and wealthy people, will provide capital to implement a variety of social schemes, some of which will be aimed at improving health and well-being.
Ma'an social incubator, on the other hand, aims at growing start-up community-based organisations and social enterprises in Abu Dhabi.
“I believe this partnership will enhance the accessibility, efficiency and effectiveness of the various initiatives being developed,” said Khaled Al Suwaidi, chief operating officer of ADGM.
“It will further encourage us to share knowledge and ideas to facilitate the rendering of Abu Dhabi, as a regional hub catering to sustainable finance.”
ADGM, which is among the fastest growing regional financial hubs, is also co-operating with other entities to promote sustainable finance. Earlier this year, it signed an agreement with Capital Markets Authority of Kenya to exchange information as well as develop, regulatory and institutional frameworks to enable the two sides to facilitate and support sustainable finance.
ADGM has also set out its sustainable finance agenda with 25 key public and private entities and institutions, who have signing the Abu Dhabi Sustainable Finance Declaration to jointly advocate for sustainable finance and investments for the long-term growth of the country's economy.